Pass on this ETF

Article Excerpt

B.A.D. ETF $12.04 (New York symbol BAD) invests globally in listed companies with exposure to betting, alcohol, and drugs (especially cannabis). The ETF also promotes itself as non-ESG (environmental, social and governance) and non-technology focused. The fund launched on December 21, 2021, and charges investors a high management fee of 0.75%. The ETF aims to track the EQM BAD Index. The weights in this index are equally distributed among the betting, alcohol, and drug companies that make up the portfolio. Current top holdings include Ambev SA, Brown Forman, Anheuser Bush, Canopy Growth, Cronos Group, and Diageo. The promotor could hardly have picked a worse time to launch the ETF. Since its December 2021 inception, the fund’s unit price has dropped by 24%. Meanwhile, the fund invests in three very different industries, each with its own set of challenges. These include intense competition and government regulation. Given the recent launch, it’s not surprising that the assets of the ETF are still small at just $8.0 million. It’s costly…

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